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Differential mortality and social security

Author

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  • BOMMIER, Antoine
  • LEROUX, Marie-Louise
  • LOZACHMEUR, Jean-Marie
Abstract
This paper studies the normative problem of redistribution between individuals who differ in their lifespans. We discuss aspects related to the objective function and argue that aversion to multiperiod inequality should be taken into account. Then, we study the properties of the social optimum both with full information and with asymmetric information. We highlight the role of aversion to multiperiod inequality and show that it has substantial consequences on the design of Social Security schemes. In particular, we show that for a low (resp. high) aversion to multiperiod inequality, a negative (resp. positive) implicit tax rate on continued activity is desirable. Ce mémoire étudie le problème normatif de la redistribution entre individus qui ont des durées de vie différentes. On discute certains aspects reliés à la fonction objective et on montre que l'aversion à l'inégalité sur plusieurs périodes doit être prise en compte. On étudie les propriétés de l'optimum social à la fois dans les cas d'information complète et d'information asymétrique. On souligne le rôle de l'aversion à l'inégalité sur plusieurs périodes, et on montre qu'elle a des conséquences importantes sur le design des régimes de sécurité sociale. En particulier, on montre que pour une faible (haute) aversion à l'inégalité, un taux d'imposition implicite négatif (positif) sur la continuation des activités est désirable.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • BOMMIER, Antoine & LEROUX, Marie-Louise & LOZACHMEUR, Jean-Marie, 2011. "Differential mortality and social security," LIDAM Reprints CORE 2285, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2285
    DOI: 10.1111/j.1540-5982.2010.01632.x
    Note: In : Canadian Journal of Economics/Revue Canadienne d'Economique, 44(1), 273-289, 2011
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    as
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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